Interesting article about Oil

wanghong

--------------------------------------------------------------------------------
Below is an Interesting article I found, which says that.....Do not
, A% E; f( p/ F9 u  c3 qexpect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
% Q& H1 M0 b8 ^. i# y3 V- [these oil producer will go bankrupt or out of the business even if
& ?5 W2 e6 g7 Z" [; Acrude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils

Recently OPEC reduced crude oil production twice over just a few
# B2 D2 M7 W( p) W6 Ymonths. There are three wars going on in Gaza, Iraq and Afghandistan.
A year ago these things would have spiked the price of crude oil by at
# T* p' M5 \* ~( D; nleast $50.00 per barrel. Today, oil price declined by a record amount.
% \' R0 B/ E6 z

/ C+ d4 U; J3 s( {There are several reasons the price of oil is decreasing in the face
: A4 p7 |" J% l, W" vof so much news. These reasons are:
+ `8 W9 K1 o7 y, ?0 n2 i+ K
8 v) s3 `, B* i
1. New oil has been found in Canada, Montana, North & South Dakota and
  s# D/ z# s5 qin the ocean near Brazil. Each of these oil fields has more oil than
3 ~1 G7 C7 B! r; I- G. tArabia.
) f; Q( ~: w2 f5 j' X
. ?2 Z! ]* M+ b  o
2. New natural gas has been found in Pennsylvania and West Virginia.
& Z, i  j. w" ]& EThis is the largest find in North America.
, m4 n& S; o9 R

3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.

( c- g- Q  w* w* D( e' C% @9 V' J
4 b  _% u+ |: o  u" T4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
3 V- |2 b+ r# V8 f, O4 h+ S* Tpotential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.

5 _. q( c. i* k. k( {3 i5 U
  n- U( m+ D* j+ F5 l( d) ?5. Virtually every restaurant in the US and all food processing plants
& l! x; E1 j8 K9 M9 pare now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
' {$ N3 Q" Y2 Tto bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.
8 D4 X1 r0 ]! O" b) Q8 t: p! {  D0 X
+ [/ N* g( L; W: Y) j$ n
6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
( w' J5 R* |5 ?- G8 y3 ], Qexpected to be built in the future. Much of the energy they produce
will replace oil.
; D3 v8 E% c7 e* P# Q1 w
2 W: O: b0 ^+ ~. ]# ]6 O0 u
7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
1 a. |) b- x5 ~/ @3 pwith new more fuel efficient equipment. Airlines and railway companies
' x6 }% i( ?  Oare experiencing 20% to 25% better fuel econony with the new
/ G# H2 D3 [! j' o+ requipment.
# d8 z& i3 u' o/ v
. F  p/ J; o) X8 W. m" j. s
Airlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.

5 X  R& ?2 p. {: z$ q
8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
( Y& c) D) C; a: o- E# Lavailable at very little cost or risk. The gas is displacing crude
oil.


: U8 d/ `0 ^6 M. h7 d9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
oil wells.

# D7 n4 B) l2 W+ @. w- ~
" b  @5 O/ a. }% U+ F: k; y10. Solar, wind and ocean energy is displacing oil as an energy
- a5 Y# W, c  V/ y: Rsource. Three new wind turbines are being erected every day in the US.


" {+ R0 E+ {1 _0 b3 JEach of the above by itself will not make a large difference in the
! \' G+ S+ H6 R  tprice of crude oil but the sum of all of them together is world
+ f! Y% t8 E7 @; m7 dchanging. The important thing is that OPEC no longer has the ability
# Z+ ^7 q9 r: L2 [! D6 mto control oil prices.


0 t" l; K' Y9 M. C4 X' |+ yWith the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
& |8 C! u' y& ^value .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
, }& b7 y4 f8 @' z3 [

2 L0 W  C1 o4 N  d, O/ d1 ]) }6 iThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only